Court Blocks Sales of Botox Alternative

By: ANJALI ATHAVALEY

A U.S. district court issued a 10-month injunction against a maker of a Botox alternative that was accused of misappropriating trade secrets belonging to Allergan Inc. AGN -0.14%

The injunction, issued by the U.S. district court for the Central District of California, is a win for Botox owner, Allergan, and deals a blow to closely held Merz Group because it prohibits two units of the German company from selling the rival Xeomin drug for cosmetic use in the U.S. for 10 months. Like Botox, Xeomin was marketed for cosmetic and therapeutic reasons.

"The reputational damage and inconvenience to physicians [and] patients will make Xeomin relaunch a challenge," said Larry Biegelsen, an analyst at Wells Fargo WFC +0.20% . He added that the injunction wasn't unexpected, but its duration and scope had been uncertain. The injunction order also restricts Merz from selling the drug for therapeutic use to physicians in certain areas.

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